The four stars has aftertax income of 62000 for the year


The Four Stars has aftertax income of $62,000 for the year just ended. The company has a residual dividend policy and a target debt-equity ratio of .5. The firm wants to invest $89,000 in a new project. How much new borrowing will be required?

a. $44,500

b. $2,667

c. $17,500

d. $29,667

e. $59,333

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Financial Management: The four stars has aftertax income of 62000 for the year
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